Boeing Wins Qantas Order for as Many as 115 Airplanes (Update3)
Dec. 14 (Bloomberg) -- Boeing Co., the world\'s second- largest commercial aircraft maker, beat rival Airbus SAS to win an order worth as much as $15.5 billion for 115 airplanes from Qantas Airways Ltd., Australia\'s biggest carrier.
The order is for 65 Boeing 787s for delivery starting from 2008 and rights for an additional 50 787s, the Sydney-based carrier said. Boeing\'s 787 planes, which cost as much as $135 million each at list prices, will be ready for service in 2008.
The order, Qantas\'s biggest since 2000, will extend Chicago-based Boeing\'s lead over Toulouse, France-based Airbus and help it win more orders than its nearest rival for the first year in five. Qantas said it was looking for so-called wide-body planes that are more fuel efficient and will help meet demand for rising capacity.
`This is a very, very big commitment to growth and capturing international market share,\'\' Chief Executive Geoff Dixon told reporters in Sydney.
Qantas in August said it was looking to buy new aircraft including Boeing\'s 787 and Airbus\' A350 to fly short international and domestic routes. It\'s spending A$20 billion ($15 billion) on planes over the next 10 years. Boeing and Airbus have doubled their 2005 orders from the previous year, helped by rising demand for in Asia for more fuel-efficient planes.
Record Orders
Boeing has reached a record 800 firm airplane orders as of Nov. 30 compared with 687 orders for Airbus. The Boeing 787 seats 217 to 289 passengers.
The airline will pay for the planes out of operating cash flow. It will need to buy 145 engines to power the aircraft and will start the selection process for the engines in 2006.
Qantas said it chose Boeing planes because they could fly further with a full payload, they burn less fuel, they fly faster than other aircraft and having one type will reduce maintenance costs.
The number of international passengers flying between Australia rose 8.8 percent to 1.7 million visits in August from a year ago and 26 percent more than in 2003, according to the latest available figures by Australia\'s Bureau of Transport and Regional Economics.
Domestic air traffic was a record 3.7 million trips in September, 6.3 percent higher than last year.
Qantas carried 29 percent of international passengers leaving Australia in the 12 months ended June 30, more than double the volume of Singapore Airlines, its nearest competitor with 10 percent of the market. Qantas has lost about a quarter of its 40 percent-lead 10 years ago.
Jetstar Airways, Qantas\'s wholly-owned discount carrier, will take 10 787s, starting in August, 2008. The unit will have an interim fleet of four A330-200 aircraft as part of a plan that may see it start flying international routes as soon as next year.
The order is for a mix of 787-8 and 787-9 aircraft. The 787-9 model will enter operations in 2011 and will carry an additional 50 passengers.
To contact the reporter of this story:
Vesna Poljak in Sydney
[email protected]